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You may copy it, give it away or re-use it under the terms -of the Project Gutenberg License included with this eBook or online at -www.gutenberg.org. If you are not located in the United States, you'll -have to check the laws of the country where you are located before using -this ebook. - - - -Title: The Measure of Value Stated and Illustrated - With an Application of it to the Alterations in the Value - of the English Currency since 1790 - -Author: Thomas Robert Malthus - -Release Date: June 15, 2020 [EBook #62407] - -Language: English - -Character set encoding: UTF-8 - -*** START OF THIS PROJECT GUTENBERG EBOOK THE MEASURE OF VALUE *** - - - - -Produced by Charlie Howard and the Online Distributed -Proofreading Team at https://www.pgdp.net (This file was -produced from images generously made available by The -Internet Archive) - - - - - - -</pre> - - -<div class="center wspace vspace"> - -<h1> -<span class="small">THE</span><br /> -MEASURE OF VALUE</h1> - -<p class="p1 b2">STATED AND ILLUSTRATED,</p> - -<p class="p2 smaller">WITH</p> - -<p class="p2">AN APPLICATION OF IT TO THE ALTERATIONS IN<br /> - -THE VALUE OF THE ENGLISH CURRENCY<br /> - -SINCE 1790.</p> - -<p class="p1 b1 xxlarge bold">—♦—</p> - -<p class="p2 larger bold"><span class="smcap">By the Rev.</span> T. R. MALTHUS, M.A. F.R.S.</p> - -<p class="p1 small">PROFESSOR OF HISTORY AND POLITICAL ECONOMY IN THE<br /> -EAST INDIA COLLEGE, HERTFORDSHIRE.</p> - -<p class="p2"><span class="larger">LONDON:</span><br /> -JOHN MURRAY, ALBEMARLE STREET.<br /> -<span class="smaller">MDCCCXXIII.</span> -</p> -</div> - -<div class="newpage p12 in12 narrow"> -<p class="center small"><span class="bt">London: Printed by C. Roworth,</span><br /> -<span class="bb in2 l2">Bell-yard, Temple-bar.</span></p> -</div> - -<hr class="chap" /> - -<div class="chapter"> -<p><span class="pagenum" id="Page_1">1</span></p> - -<h2 class="nobreak" id="THE_MEASURE_OF_VALUE">THE MEASURE OF VALUE.</h2> -</div> - -<p class="in0 first">It is generally allowed that the word value, in -common language, has two different meanings; -one, value in use, the other, value in exchange; -the first expressing merely the usefulness of an -object in supplying the most important wants -of mankind, without reference to its power of -commanding other objects in exchange; and -the second expressing the power of commanding -other objects in exchange, without reference to -its usefulness in supplying the most important -wants of mankind.</p> - -<p>It is obviously value in the last sense, not -the first, with which the science of Political -Economy is mainly concerned.</p> - -<p>But the power of one object to command -another in exchange, or in other words the -power of purchasing, may obviously arise either -from causes affecting the object itself, or the -commodities against which it is exchanged.</p> - -<p>In the one case, the value of the object itself<span class="pagenum" id="Page_2">2</span> -may properly be said to be affected; in the other, -only the value of the commodities which it purchases; -and if we could suppose any object always -to remain of the same value, the comparison of -other commodities with this one would clearly -show, which had risen, which had fallen, and -which had remained the same. The value of -any commodity estimated in a measure of this -kind might with propriety be called its absolute -or natural value; while the value of a commodity -estimated in others which were liable to -variation, whether they were one or many, -could only be considered as its nominal or -relative value, that is, its value in relation to -any particular commodity, or to commodities -in general.</p> - -<p>That a correct measure of the power of purchasing -generally, or of commanding such important -commodities as the necessaries and conveniences -of life, in whatever way such power might -arise, would be very desirable, cannot for a moment -be doubted, as it would at once enable us -to form a just estimate and comparison of wages, -salaries, and revenues, in all countries, and at all -periods. But when we consider what such a -measure implies, we must feel certain that no -one object exists, or can be supposed to exist,<span class="pagenum" id="Page_3">3</span> -with such qualities as would fit it to become a -standard measure of this kind. It would imply -steadiness of value, not merely in one object, -but in a great number, which is contrary to all -theory and experience.</p> - -<p>Whether there is any object, which, though -it cannot measure the power of purchasing generally -under the varying facilities of production -and varying state of the demand and supply by -which different commodities are affected, may -be a correct measure of absolute and natural -value as above described, is the specific object -of the present inquiry.</p> - -<p>It follows directly, from the principles of -Adam Smith, that the conditions of the supply -of the great mass of commodities are, that -the returns should be sufficient to pay the -wages, profits and rents necessary to their -production. If these payments be made in -money at the ordinary rates of the time, they -form what Adam Smith calls their natural -prices. Money however we know is variable. -But if for money we substitute the objects necessary -to give the producer the same power -of production and accumulation as the natural -money prices would have commanded, such returns -maybe considered as the natural conditions -of the supply of commodities, and may with propriety<span class="pagenum" id="Page_4">4</span> -be denominated their natural value, in -contradistinction to their natural price.</p> - -<p>Of these three conditions of supply, or elements -of natural value, the two first are obviously -the most important. They are not only -the sole conditions of supply in those early -stages of society before the appropriation of -land has taken place, but they continue to be -so in reference to large classes of objects in the -most advanced stages of improvement; and it -is now generally acknowledged that even the -main vegetable food of an improving country, -which is the foundation of wages, must necessarily -be of the same value as that part of the -produce which is almost exclusively resolvable -into wages and profits, and pays very little rent.</p> - -<p>We cannot therefore essentially err in assuming -for the present that the natural value of -objects in their more simple forms is composed -of labour and profits,<a id="FNanchor_1" href="#Footnote_1" class="fnanchor">A</a> and the effect of any portion -of rent, or of other ingredients which are -sometimes added to these elements, may be -allowed for subsequently.</p> - -<p>We may also consider as a postulate which will<span class="pagenum" id="Page_5">5</span> -be readily granted, that any given quantity of -labour must be of the same value as the wages -which command it, or for which it actually exchanges.</p> - -<p>Of the two main elements of value, labour -and profits, the former, particularly if we include, -as we ought to do, accumulated as well -as immediate labour, is much the largest and -most powerful.</p> - -<p>The great instrument of production is labour. -There is no commodity nor implement used to -assist manual exertions in which it does not -enter as a condition of supply, and very few in -which it does not enter very largely. If in the -production of commodities and of the implements -which assist in this production, no other -ingredient were required than labour, and the -interval between the exertion of the labour and -its remuneration in the completed commodity -were so inconsiderable that it might be entirely -disregarded, it is certain that, as the same quantity -of labour would have a constant tendency to -produce commodities in the same relative proportion -to each other, and to the demand for -them, they would be found on an average to -exchange with each other according to the<span class="pagenum" id="Page_6">6</span> -quantity of labour which had been employed -to obtain them.</p> - -<p>Thus if ten mackerel were, on an average, -obtained by the same quantity of labour as two -soals, it would be necessary, in order to continue -the supply of both in the market, that the -value of a soal should be five times as great in -the power of purchasing similar commodities, -as the value of a mackerel; because if it were -less, none would apply themselves to the catching -of soals; and though it is quite certain that -at any given period the relative value of soals -and mackerel would be exclusively determined -by the state of the demand and supply of each; -and that they would, in consequence, often vary -very considerably; yet it is as certain, that on -the supposition of the hypothesis being correct, -and that they both continued to be brought to -market, each would on an average be supplied -in such a quantity, compared with the demand -for it, that a soal would ordinarily exchange -for five mackerel, and the different quantities of -labour required to produce them would, in this -case, be a correct measure both of their natural -and relative value in exchange.</p> - -<p>Now supposing that the skill and power of -the labourers were so to increase, that, in the<span class="pagenum" id="Page_7">7</span> -same time and with the same personal exertions, -they could obtain three soals and fifteen -mackerel, it is obvious that the relative value of -soals to mackerel would remain the same, but -they would both have essentially altered their -value compared with all those commodities -which still required the same quantity of labour -to produce the same supply of them. With -regard to such commodities, soals and mackerel -would have become of less value, and consequently -they would have become of less value -with regard to a given quantity of labour. The -correct language in this case would be, not that -labour had become dearer, but that soals and -mackerel had become cheaper. And if the same -increase of skill and power could be conceived to -extend to all other commodities, and all commodities -were similarly circumstanced as to their -mode of production and bringing to market; it -cannot be doubted, that though they might -retain the same relative value compared with -each other, they would all become more plentiful -with regard to the wants of the society, -and any given quantity of labour. And the -correct language would still be, not that labour -had become dearer, but that all commodities had -become cheaper. This fall would be a fall in -the absolute and natural value of commodities;<span class="pagenum" id="Page_8">8</span> -and as long as labour alone was concerned in -their production, and they were brought to -market immediately, it would be allowed that -the different quantities of labour employed upon -them would be a correct measure both of their -relative value compared with each other, and of -their absolute and natural value in reference to -the conditions of their supply. Their natural -values would be exactly represented by the -different quantities of labour worked up in -them; while their natural prices would be these -different quantities of labour estimated in money, -according to the money price of the labour -employed.</p> - -<p>But at a very early period of society a considerable -interval must elapse between the exertion -of some sorts of labour and the completion -of the article on which they are employed. -And the next simplest form of production, beyond -the result of mere labour, is that, where, -in addition to the labour employed directly on -the commodity and on the simple tools necessary -to its production, the condition of the -supply requires that a certain compensation be -made in the final remuneration for the time which -has elapsed from the period of the advances of -the labour, to the period when the labourer, or -capitalist, can be remunerated. This compensation,<span class="pagenum" id="Page_9">9</span> -which equally applies to the formation of -the capital, as to the products to be obtained -by it, is the profit which must be paid on the -advances of the labour, and is absolutely necessary -to the encouragement of such advances.</p> - -<p>But in this state of things commodities would -cease to exchange with each other according -to the quantity of labour employed upon them. -Some commodities, on which the same quantity -of accumulated and immediate labour had been -employed, would be of a different exchangeable -value, on account of the different quantity of -profits which had entered into their composition; -while others, on which different quantities -of accumulated and immediate labour had been -employed, might be of the same exchangeable -value, on account of the greater quantity of -profits of which they were composed being -balanced by the smaller quantity of labour advanced -to produce them.</p> - -<p>In the earliest stages of society accumulations -of capital are very rare, and profits may -be extremely high, perhaps forty or fifty per -cent. If under these circumstances the construction -of a war canoe were to take two years -before it were fit for use, it is evident that its -value in exchange would be prodigiously enhanced -by such profits. Compared with a<span class="pagenum" id="Page_10">10</span> -number of deer which might have cost exactly -the same quantity of accumulated and immediate -labour to bring to market, the canoe would -be seventy or eighty per cent. of greater value; -and on the fall of profits from forty or fifty per -cent. to ten per cent. in the progress of society, -an object of this kind might fall in value sixty -or seventy per cent. compared with such objects -as deer or fish, without any difference in the -quantity of labour employed upon either.</p> - -<p>It is observed by Adam Smith that corn is -an annual crop, butchers’ meat a crop which -requires four or five years to grow; and consequently, -if we compare two quantities of corn -and beef which are of equal exchangeable -value, it is certain that a difference of three or -four additional years profit at fifteen per cent. -upon the capital employed in the production of -the beef would, exclusively of any other considerations, -make up in value for a much smaller -quantity of labour, and thus we might have two -commodities of the same exchangeable value, -while the accumulated and immediate labour of -the one was forty or fifty per cent. less than -that of the other. This is an event of daily -occurrence in reference to a vast mass of the -most important commodities in the country; -and if profits were to fall from fifteen per cent.<span class="pagenum" id="Page_11">11</span> -to eight per cent. the value of beef compared -with corn would fall above twenty per cent.</p> - -<p>When commodities are obtained by the assistance -of a large proportion of fixed capital of -a very durable nature, the advances are only -consumed in part, and the whole produce of the -accumulated and immediate labour employed -must be considered as composed of the new -produce obtained, together with the remainder -of the fixed capital which is unconsumed.<a id="FNanchor_2" href="#Footnote_2" class="fnanchor">B</a> In -reference to the separate value of the new -produce, this will be the same as if to the -labour actually worked up in such produce -were added the profits of the whole capital -advanced. It sometimes happens that the proportion -of value arising from these profits is -very considerable; and commodities so produced -will necessarily have much less labour -worked up in them, and will be much more -affected in their value by a rise or fall of profits, -than those which are composed mainly of immediate -labour.</p> - -<p>Thus, if a commodity were produced by the -aid of accumulated labour in machinery worth -£2,000, the annual wear and tear of which was<span class="pagenum" id="Page_12">12</span> -one-twentieth, or £100, and the labour employed -on cheap materials and in the working of the -machinery were worth £200, while profits were -20 per cent. then the value of the labour worked -up in the commodity would be £100 added to -£200, equal to £300; and the whole capital advanced -being £2,300, the profits upon it would -be £460, which, added to £300 would make the -whole value of the produce £760. Compared -with a commodity of equal value which had -been produced without fixed capital, and had -yet been brought to market in the same time -and with the same rate of profits, it would contain -less than half of the labour worked up in -it; while, if profits were to fall from 20 per -cent. to 10 per cent. the value of the commodity -would fall in the proportion of from £760 to -£530, or, if profits had been 10 per cent. and -were to rise to 20 per cent. the value of the -commodity would rise in the proportion of from -£530 to £760, or above 42 per cent., without any -change in the quantity of labour employed.<a id="FNanchor_3" href="#Footnote_3" class="fnanchor">C</a></p> - -<p>It must be allowed, then, that whenever two<span class="pagenum" id="Page_13">13</span> -elements are necessary to the supply, and -enter into the composition of commodities, their -value cannot depend exclusively upon one of -them, except by accident, or when the other -can be considered as a given or common quantity. -But it is universally acknowledged, that -the great mass of commodities in civilized and -improved countries is made up at the least of -two elements—labour and profits; consequently, -the exchangeable value of commodities into -which these two elements enter as the conditions -of their supply, will not depend exclusively -upon the quantity of labour employed -upon them, except in the very peculiar cases -when both the returns of the advances and the -proportions of fixed and circulating capitals -are exactly the same.</p> - -<p>It cannot, then, be said with any thing like -an approximation towards correctness, that the -labour worked up in commodities is the measure -of their exchangeable value.</p> - -<p>But if to the accumulated and immediate labour<span class="pagenum" id="Page_14">14</span> -worked up in commodities, we add the -profits upon the whole advances for the time -that they are advanced, we shall then make -the proper allowance for the other element of -value, and may expect to obtain a more accurate -measure. If we had estimated the value -of the labour advanced in money, or any other -medium, we should of course estimate the profits -in the same medium, and the natural price -of the commodity estimated in such medium, -would obviously be equal to the price of the -accumulated and immediate labour expended -on the commodity, together with the ordinary -profits estimated upon such advances. But if, -with a view to the natural conditions of supply, -we consider only the quantity of labour advanced, -without reference to any other medium, we -must of course estimate the profits in quantity -of labour also, which will give us an amount of -labour in proportion to which commodities will -be found to exchange with each other, just in -the same way as they would exchange with -each other according to the quantity of labour -employed on them, if labour had been the sole -ingredient which had entered into their composition.</p> - -<p>Thus, if a hundred days labour were employed -upon a commodity, at two shillings a day, and<span class="pagenum" id="Page_15">15</span> -the average interval between the advance of such -wages and the period when the commodity could -be brought to sale were a year, and profits were -20 per cent. the price of the commodity would be -£12, while the price of a commodity which had -cost the same quantity of labour of the same kind, -and could be brought to market immediately, -would be only £10. And it is equally certain, -that, if putting money or any other medium of -exchange out of the question, we had estimated -the profits for a year upon the advances of the -hundred days labour actually employed, we -should obtain a quantity of labour which, compared -with the labour employed on the commodity -sold immediately, would be in the proportion -of 120 to 100, and expressing the relative -conditions of supply, would accurately -measure the rate at which the two commodities -obtained under these different circumstances -would exchange with each other.</p> - -<p>It appears, then, that in the same country, -and at the same time, the exchangeable value of -those commodities which can be resolved into -labour and profits alone, would be accurately -measured by the quantity of labour which -would result from adding to the accumulated -and immediate labour actually worked up in -them the varying amount of the profits on all<span class="pagenum" id="Page_16">16</span> -the advances estimated in labour. But this -must necessarily be the same as the quantity of -labour which they will command, as appears -from the instances above stated, and will be -more fully shown farther on; and where the -precious metals may be considered for short -periods as of a uniform value, the conformity of -this measure with the proportions of money -prices at which commodities would be exchanging -all around us, might daily be brought to the -test of experience and be established beyond -the possibility of doubt.</p> - -<p>It will be said, perhaps, that in the same -place, and at the same time, almost every commodity -may be considered as an accurate measure -of the relative value of others, and that -what is true of labour in this respect is true of -cloth, cotton, iron, or any other article. Any -two commodities which, at the same time, and -in the same place, will purchase or command -the same quantity of cloth, cotton, or iron, of -a given quality, will have the same relative -value, or will exchange with each other.</p> - -<p>This will be readily granted, if we take the -same time and place exactly, and consider only -relative value; but not if either any latitude be -allowed as to time and place, or if we consider, -as it is our object to do, not merely relative, but<span class="pagenum" id="Page_17">17</span> -absolute and natural value. Cloth, cotton, -iron, and similar commodities, are subject to -vary most essentially in a single year, or even -month, so that the manufacturer who could obtain -for his goods the same quantity of cloth as -he could the year before, would be very little -likely to obtain the same quantity of other articles. -But even supposing that these articles -and the product of the capitalist were to continue -of the same relative value to each other, -he might still be quite unable to carry on his -business. The conditions of the supply of -commodities do not require that they should -retain always the same relative values, but that -each should retain its proper <em>natural</em> value, or -the means of obtaining those objects which will -continue to the producer the same power of -production and accumulation. If the advances -of capitalists consisted specifically in cloth, then -these advances would always have the effect -required in production; and as profits are calculated -upon the advances necessary to production, -whatever they may be, the quantity of cloth -advanced, with the addition of the ordinary -profits estimated also in quantity of cloth, would -represent both the natural and relative value of -the commodity. But the specific advances of -capitalists do not consist of cloth, but of labour;<span class="pagenum" id="Page_18">18</span> -and as no other object whatever can represent -a given quantity of labour, it is obvious that labour -stands quite alone in this respect, and that -it is the quantity of <em>labour</em> which a commodity -will command, and not the quantity of any -other commodity, which can represent the conditions -of its supply, or its natural value.<a id="FNanchor_4" href="#Footnote_4" class="fnanchor">D</a></p> - -<p>It will be allowed, then,</p> - -<p>First, that when commodities are obtained -by labour alone, and sold immediately, they -will, on an average, exchange with each other -according to the quantity of labour employed -upon them.</p> - -<p>Secondly, that when profits are concerned, -and differ either in rate or quantity, commodities -can no longer exchange with each other, -according to the quantity of labour employed -upon them, except by accident.</p> - -<p>Thirdly, that the quantity of accumulated -and immediate labour applied to their production, -must, in all the less complex cases, form<span class="pagenum" id="Page_19">19</span> -the advances on which profits may be correctly -calculated.</p> - -<p>And, fourthly, that when profits are calculated -upon these advances, a quantity of labour -is obtained, according to which it is found, -by experience, that commodities do exchange -with each other in the same country; and, -further, that this quantity of labour not only -expresses correctly their value in exchange with -each other, but their absolute and natural value -in reference to the conditions of their supply.</p> - -<div class="tb">* * * * *</div> - -<p>In proceeding to consider what takes place -in different countries where the value of the -precious metals is very different, it will readily -be acknowledged, that the rate at which commodities -exchange with each other is not proportioned -to the labour which has been employed -upon them, with the addition of profits. -And it is quite certain, that they cannot be -proportioned to the quantity of labour alone -of which they are composed. We know, from -experience, that the commodities of different -countries are actually exchanged with each -other according to their money prices at the -time. These prices must be determined partly -by those natural elements of value which determine -the rate at which commodities exchange<span class="pagenum" id="Page_20">20</span> -with each other, and the natural conditions -of their supply in each country, and -partly by the different value of the precious -metals in different situations, which must necessarily -have a most powerful effect on the -rate at which foreign commodities are exchanged.</p> - -<p>Knowing then the elements of the natural -and relative value of commodities in the same -country, if we knew also the difference in the -value of money in different countries, we -should know at once the rate at which the -commodities of different countries would exchange -with each other.</p> - -<p>Now there is no supposition but one, relating -to the value of money in different countries, -which, combined with the natural elements of -the value of produce in each, would constitute -the present natural prices of commodities in -these countries, or the rates at which they -actually exchange with each other. This is -the supposition that the differences in the -value of money in different countries are proportioned -to the differences in the money -prices of agricultural labour.<a id="FNanchor_5" href="#Footnote_5" class="fnanchor">E</a></p> - -<p>The conditions of the supply of an Indian<span class="pagenum" id="Page_21">21</span> -commodity are the advance and consumption -of a certain quantity of Indian labour, with -the profits on all the advances for the time -that they are employed. Thus, if for the -production of an Indian commodity, a fixed -capital consisting of accumulated labour and -profits, equal to 300 days, were advanced for -a year, and a quantity of accumulated and -immediate labour, consisting of the wear and -tear of the machinery, the materials to be -worked up, and direct labour, equal to 1500 -days, were consumed on the commodity in -the same time, profits being 20 per cent., the -natural value of such commodity in India -would be equal to the 1500 days labour consumed, -with a profit of 20 per cent. upon -1800 days labour, which would amount to 1860 -days labour.</p> - -<p>If labour in India were fourpence a day, the -fixed money capital in this case would equal £5, -the labour advanced and consumed £25, and -the labour consumed, together with the profits -on the whole advances, would be equal to £31.<span class="pagenum" id="Page_22">22</span> -And this would evidently be the natural price -at which the commodity would circulate, and -according to which it would exchange with any -foreign commodity brought to India.</p> - -<p>On the same principle, if for the production -of an English commodity, 300 days labour -were advanced in fixed capital for a year, and -1500 days labour were consumed on the commodity -in the same time, while profits were 10 -per cent., the natural value of such commodity, -or the conditions of its supply, would be 1500 -days labour, with a profit of 10 per cent. upon -1800, which together would equal 1680: and -if labour were two shillings a day, the natural -price at which the commodity would circulate, -and according to which it would exchange with -any foreign commodity brought to England, -would be £168. This prodigious difference in -the natural prices of two commodities in England -and India, the natural values of which in -each country were nearly the same, could only -arise from a difference in the value of money -occasioned by the very superior efficiency of -English labour in the purchase of the precious -metals, owing to the energy, skill, and situation -of English labourers and capitalists, compared -with those of India. But in estimating this -difference in the value of money in England and<span class="pagenum" id="Page_23">23</span> -India, it is quite obvious, that if, after ascertaining -the natural conditions of the supply of a -commodity in each country, we were to estimate -the value of money either by its general -power of purchasing, by a mean between corn -and labour,<a id="FNanchor_6" href="#Footnote_6" class="fnanchor">F</a> or by the quantity of labour alone -which had been actually employed in bringing -the money from the mine to the market, or by -any other measure whatever, except the labour -which it would command, we should not account -for the natural prices which are found -actually to prevail in the two countries, and -according to which Indian and English commodities -are found to exchange with each other -by experience.</p> - -<p>Consequently, as no other supposition will -suit the actual phenomena, and as it has already -appeared that the value of commodities in the -same country is determined by the quantity of -labour which they will command, we may -safely conclude that the value of the precious -metals in different countries is determined by -the same measure, or by the different quantities -of common agricultural labour, taking the average<span class="pagenum" id="Page_24">24</span> -of summer and winter wages, which a -given portion of them will command.</p> - -<div class="tb">* * * * *</div> - -<p>When we come to consider the varying value -of commodities at distant periods in the same -country, or the rise or fall of produce in the progress -of cultivation and improvement, we are -necessarily deprived of the test of an actual -exchange. We know, however, that at different -periods in the same country both the value of -the precious metals, and the rate of profits and -corn wages, may alter most essentially.</p> - -<p>The effect of the varying value of the precious -metals, when we have once obtained a -measure of value, will be easily estimated. -The most important point at present is, to consider -the effects which must be produced upon -the value of commodities in the progress of -society, by the changes which necessarily take -place in the profits of stock and the corn wages -of labour.</p> - -<p>On the supposition of high profits at an early -period of society, and a considerable fall of -them subsequently, how are we to measure and -compare the value of commodities at these different -periods? With regard to those which -had continued to cost the same quantity of -accumulated and immediate labour, we could -not say that they were of the same value, unless<span class="pagenum" id="Page_25">25</span> -we were prepared to assert that the value -of commodities is determined solely by the -labour employed upon them, not only when -the rate of profits is the same but when it is -totally different;<a id="FNanchor_7" href="#Footnote_7" class="fnanchor">G</a> a proposition which no one -can venture to assert in the case of foreign -commodities, and which there is as little reason -to assert in comparing the commodities of distant -periods.</p> - -<p>If profits were 50 per cent. five hundred -years ago, and are 10 per cent. now, the question -is, whether a piece of cloth which had cost -the same quantity of labour at these different -periods would be of the same value. By the -supposition it was composed of a greater quantity -of profits in the earlier period, and having -cost the same quantity of labour, we should -naturally conclude that it would be of a higher -value.</p> - -<p>It is said, however, that, although it cost the -same quantity of labour, yet that the labour in -the former period was of much less value,<span class="pagenum" id="Page_26">26</span> -which would counterbalance the greater quantity -of profits, and leave the value obtained by -the same quantity of labour the same. But -when we are thus referred to the lower value -of labour, the principle of compensation which -had before been applied is quite forgotten. -The corn which pays the labourer is indeed -obtained by a smaller quantity of labour, on -account of the superior fertility of the soil from -which it is raised, but it is sold as the cloth is -sold, at a profit of 50 per cent.; and if it be -said that, in the case of the cloth, the low value -of wages which is supposed to be the result of -superior fertility counteracts the high profits -and keeps the value of cloth the same, surely it -may be said, in the case of the corn which pays -the wages, that the smaller quantity of labour -necessary to produce it is made up by the -greater rate of profits at which it is sold, and -the value of wages is thus kept the same.</p> - -<p>If 100 quarters of corn be obtained in the -different periods of society by the labour of a -different number of men, such as 7, 8 and 9, -each paid at the rate of 10 quarters a year, the -value of the 100 quarters of corn, or the value -of the wages of any one of the men employed, -estimated in the labour advanced, with the<span class="pagenum" id="Page_27">27</span> -addition of the profits upon such advances, -must obviously always be the same.</p> - -<p>At an early period of society, when the soil -was very fertile and the labour of 7 men only -was necessary to produce 100 quarters of corn -on land which paid little or no rent, the advances -in labour being 7 men, or in corn 70 -quarters, and the return 100 quarters, the rate -of profits would be 42-6/7 per cent., and the advances -of the labour of 7 men increased by a -profit of 42-6/7 would equal the labour of 10 men, -or the quantity of labour which the whole -return would command. At a more advanced -period, when the last land taken into cultivation -was less fertile, and the labour of 8 men was -necessary to obtain the return of 100 quarters, -the advances in labour being 8 men, or in corn -80 quarters, the rate of profits would be 25 per -cent., and the labour of 8 men increased by 25 -per cent. would exactly equal the labour of 10 -men. On the same principle, if at a still later -period 9 men were necessary to produce the -100 quarters, the rate of profits would be 11-1/9 -per cent., and the quantity of labour employed -increased by the profits would still be equal to -the labour of 10 men.</p> - -<p>It appears then that when the labourer continues<span class="pagenum" id="Page_28">28</span> -to be paid the same corn wages, the -value of the whole corn produce, or the value -of each man’s wages estimated in the usual -way in labour and profits, must obviously remain -constant, and that it must be most erroneous -to infer that labour rises in value because -it requires more labour in the progress of cultivation -to produce the wages of 10 men or one -man, if at the same time it requires such a -diminished value of profits as exactly to balance -it.</p> - -<p>But in the progress of cultivation, the corn -wages of labour do not continue the same, and -corn must consequently be liable to great variation -of value, both on account of temporary -variations in the state of the supply compared -with labour, and on account of the more permanent -state of the demand and supply of corn -compared with labour, owing to the increasing -difficulty of production.</p> - -<p>It may be laid down, however, as a general -proposition, liable to no exception, that when -the value of any produce can be resolved into -labour and profits, then as the <em>proportion</em> of such -produce which goes to labour increases, the -proportion which goes to profits must decrease -in the same degree, and as the <em>proportion</em> which<span class="pagenum" id="Page_29">29</span> -goes to labour decreases, the proportion which -goes to profits must increase in the same degree.<a id="FNanchor_8" href="#Footnote_8" class="fnanchor">H</a></p> - -<p>Thus if ¾ of the produce, whatever that produce -may be, go to labour, ¼ will remain for -profits; if ⅚ go to labour, ⅙ will remain for profits; -and if ½ only go to labour, ½ will remain -for profits.</p> - -<p>In reference to corn or commodities in general, -compared with each other at different -periods in the progress of cultivation, it is obvious -that neither an increase in the quantity of -labour required to produce them, nor an increase -in the quantity of produce awarded to -the labourer, can ever determine the proportion<span class="pagenum" id="Page_30">30</span> -of the whole produce which goes to labour and -affect profits accordingly; because if the quantity -of labour required to produce them increases, -the effect of this upon profits may be -totally destroyed by a diminution at the same -time of the quantity of produce awarded to the -labourer; or if a larger quantity of produce be -awarded to the labourer, it may be only in consequence -of a smaller quantity of labour being -necessary to obtain the same produce, in which -case profits may remain undiminished, or even -rise, at the same time that corn wages rise.</p> - -<p>But if instead of referring to commodities -generally, we refer to the variable quantity of -produce which, under different circumstances, -forms the wages of a given number of labourers, -we shall find that the variable quantity of -labour required to obtain this produce will -always exactly agree with the proportion of the -whole produce which goes to labour; because, -however variable may be the amount of this -produce, it will be divided into a number of -parts equal to the number of labourers which it -will command, and as the first set of labourers -who produced these wages may be considered -as having been paid at the same rate as the -second set, whose labour the produce commands; -it is obvious that if to obtain the produce<span class="pagenum" id="Page_31">31</span> -which commands ten labourers, 6, 7, 8, -or 9 labourers be required, the proportion of -the produce which goes to labour, in these different -cases, will be 6/10, 7/10, 8/10, or 9/10, leaving -4/10, 3/10, 2/10, or 1/10, for profits.</p> - -<p>It is impossible to refer what is proposed as -a standard to any <em>other</em> measure, because, in -that case, the other measure would be the standard. -But if it can be shown, that any object, -the value of which is composed of two elements, -is of such a nature that while the value of one -of these elements increases, the value of the -other decreases exactly in the same degree, -such object must be of a constant value. If -the values of two variable quantities, <i>X</i> and <i>Y</i>, -be equal to the constant value <i>A</i>, it follows -that, in all the variations to which <i>X</i> and <i>Y</i> are -subject, whatever value <i>X</i> gains must be lost -by <i>Y</i>, and whatever value <i>Y</i> gains must be lost -by <i>X</i>. The converse of this proposition must -also be true, that is, if the value of any object -be made up of the variable values of two other -objects, and it can be shown that, from the -nature of these two objects, whatever increase -of value one of them gains, must necessarily be -lost by the other, and vice versâ, it follows that -the value of the object, to which the two others -are equal, must be constant. Now it has appeared<span class="pagenum" id="Page_32">32</span> -that the variable values of the labour -and of the profits which compose the value of -the variable quantity of corn awarded in wages -to a given number of labourers, must necessarily -be such, that, as the quantity of labour -required to produce them increases, either from -difficulty of production or from the greater -quantity of produce awarded to the labourer, -all the value thus gained by labour is lost by -profits; and as the quantity of labour required -to produce them is diminished, either by facility -of production or the small quantity of -produce awarded to the labourer, all the value -which is gained by profits is lost by labour. -Consequently, the value of the variable quantity -of produce which, under different circumstances, -forms the wages of a given number of -men, being composed of the values of the two -elements, labour and profits, varying as above -described, must be constant, and may therefore, -with propriety, be proposed as a standard -measure.</p> - -<p>I have entered at some length into the details -which show the necessary constancy of the -value of labour, on account of its great importance; -but, in reality, it follows directly -from the manner in which the natural value of -commodities and of wages is estimated, that<span class="pagenum" id="Page_33">33</span> -when the labourer earns a greater or a smaller -quantity of money or necessaries, it is not the -value of labour which varies, but, as Adam -Smith says, “it is the goods which are cheap -in the one case and dear in the other.”</p> - -<p>If labour alone, without any capital, were -employed in procuring the fruits of the earth, -the greater facility of procuring one sort of -them compared with another, would not, it is -acknowledged, alter the value of labour, or the -exchangeable value of the whole produce obtained -by a given quantity of exertion. We -should, without hesitation, allow that the difference -was in the cheapness or dearness of the -produce, not of the labour.</p> - -<p>In the same manner it will follow, that when -capital and profits enter into the computation -of value, and the demand for labour varies, the -high or low reward of labour estimated in produce, -implies a change in the value of the produce, -not a change in the value of the labour.</p> - -<p>If the increased reward of the labourer takes -place without an increase of produce, this cannot -happen without a fall of profits, as it is a -self-evident truth, that given the quantity of the -produce to be divided between labour and -profits, the greater the portion of it which -goes to labour the less will be left for profits. -What then will be the result? It will appear<span class="pagenum" id="Page_34">34</span> -that the value of the produce has fallen, and the -value of wages, or of labour, will have remained -the same. To obtain any given portion of the -produce the same quantity of labour is necessary -as before, but profits being diminished, -the value of the produce is decreased; while -this diminution of profits in reference to the -value of wages is just counterbalanced by the -increased quantity of labour necessary to procure -the increased produce awarded to the labourer, -leaving the value of labour the same as before.</p> - -<p>Perhaps in the case just supposed, the result -may be said to be occasioned by a fall in the -value of the produce, without what could properly -be called an increased demand for labour. -But if we suppose that a considerable number -of labourers were sent out of the country, or -swept off by a plague, there could then be no -doubt of a great demand for labour, yet the result -would be similar. A larger quantity of -produce would necessarily be awarded to the -labourer, and profits would fall. A given quantity -of produce obtained by the same quantity -of labour as before, would fall in value on account -of the fall of that part of its value which -consisted of profits, while the fall of profits on -the increased wages would be balanced by the -increased labour necessary to obtain them.</p> - -<p>If instead of labourers being sent out of the<span class="pagenum" id="Page_35">35</span> -country, labourers were imported, the result -would be just opposite. A smaller quantity of -produce would be awarded to the labourer and -profits would rise. A given quantity of produce, -which had been obtained by the same -quantity of labour as before, would rise in value -on account of the rise of profits, while this rise -of profits, in reference to the wages of the -labourer, would be balanced by the smaller -quantity of labour necessary to obtain the diminished -produce awarded to the labourer.</p> - -<p>In the former case of the demand for labour, -it appeared that the greater earnings of the -labourer were occasioned, not by a rise in the -value of labour, but by a fall in the value of -the produce for which the labour was exchanged. -And in the latter case of the abundance -of labour, it appeared that the small -earnings of the labourer were occasioned by a -rise in the value of the produce, and not by a -fall in the value of the labour.</p> - -<p>The result would be similar, if instead of -supposing the same quantity of produce to be -obtained by the same quantity of labour, we -were to suppose the greatest variations to take -place in the fertility of the soil, and, consequently, -in the productive power of labour.<span class="pagenum" id="Page_36">36</span> -In all cases it would still be found that, as -Adam Smith says, it is the produce which varies -in value, not the labour for which it will exchange; -and if money were obtained in the -way in which its value would unquestionably -be the most constant, all these variations would -appear in the money prices of commodities, -whenever the demand for labour varied; while -the money price of a given quantify of labour -would remain the same.<a id="FNanchor_9" href="#Footnote_9" class="fnanchor">I</a></p> - -<p>The following Table will further illustrate -the necessary constancy in the value of labour, -and some of its most important results, in a -clearer manner and in a shorter compass than -if each case were taken separately.</p> - -<p>The first column represents the varying fertility -of the soil, by the varying quantity of -corn which can be obtained by the labour of a -given number of men.</p> - -<p>The second column represents the yearly<span class="pagenum" id="Page_37">37</span> -corn wages of each labourer, determined by -the state of the demand and supply of produce -compared with labour.</p> - -<p>The third column represents the variable -advances of produce, in the form of corn wages, -which, according to the rate at which the labourers -are paid, are necessary to obtain the -produce of the first column.</p> - -<p>The fourth column represents the rate of -profits determined in the common way, by the -proportion which the excess of the produce in -the first column above the produce paid to the -labourers in the third, bears to these advances.</p> - -<p>The fifth and sixth columns represent the -quantity of labour required to produce the -varying corn wages of the given number of -men, with the profits estimated also in quantity -of labour; and the reader will see at once that -these two columns must necessarily, from the -manner in which profits and wages are estimated, -make up the constant quantity and -value of labour which appears in the seventh -column.</p> - -<p>The eighth and ninth columns show the value -of a given quantity of corn, and the value of the -produce of a given number of men under the -varying circumstances supposed.</p> - -<p class="p2 center"><i>Table illustrating the invariable Value of Labour and its Results.</i><span class="pagenum" id="Page_38">38</span></p> - -<div class="blockquot hang"> - -<p>KEY:</p> - -<p>1. Quarters of Corn produced by Ten Men, of varying Fertility of the Soil.</p> - -<p>2. Yearly Corn Wages to each Labourer, determined by the Demand and Supply.</p> - -<p>3. Advances in Corn Wages, or variable Produce commanding the Labour of Ten Men.</p> - -<p>4. Rate of Profits under the foregoing Circumstances.</p> - -<p>5. Quantity of Labour required to produce the Wages of Ten Men under the foregoing Circumstances.</p> - -<p>6. Quantity of Profits on the Advances of Labour.</p> - -<p>7. Invariable Value of the Wages of a given Number of Men.</p> - -<p>8. Value of 100 Quarters of Corn under the varying Circumstances supposed.</p> - -<p>9. Value of the Product of the Labour of Ten Men under the Circumstances supposed.</p></div> - -<table class="wide" summary="Value of Labor"> - <tr> - <td class="tdc bx">1.</td> - <td class="tdc bx">2.</td> - <td class="tdc bx">3.</td> - <td class="tdc bx">4.</td> - <td class="tdc bx">5.</td> - <td class="tdc bx">6.</td> - <td class="tdc bx">7.</td> - <td class="tdc bx">8.</td> - <td class="tdc bx">9.</td> -</tr> - <tr> - <td class="tdl bl">150 qrs.</td> - <td class="tdl bl">12 qrs.</td> - <td class="tdl bl">120 qrs.</td> - <td class="tdl bl">25 pr. Ct.</td> - <td class="tdl bl">8</td> - <td class="tdl bl">2</td> - <td class="tdl bl">10</td> - <td class="tdl bl"> 8.33</td> - <td class="tdl bl br">12.5</td> -</tr> - <tr> - <td class="tdl bl">150</td> - <td class="tdl bl">13</td> - <td class="tdl bl">130</td> - <td class="tdl bl">15.38</td> - <td class="tdl bl">8.66</td> - <td class="tdl bl">1.34</td> - <td class="tdl bl">10</td> - <td class="tdl bl"> 7.7</td> - <td class="tdl bl br">11.53</td> -</tr> - <tr> - <td class="tdl bl">150</td> - <td class="tdl bl">10</td> - <td class="tdl bl">100</td> - <td class="tdl bl">50</td> - <td class="tdl bl">6.6</td> - <td class="tdl bl">3.4</td> - <td class="tdl bl">10</td> - <td class="tdl bl">10</td> - <td class="tdl bl br">15</td> -</tr> - <tr> - <td class="tdl bl">140</td> - <td class="tdl bl">12</td> - <td class="tdl bl">120</td> - <td class="tdl bl">16.66</td> - <td class="tdl bl">8.6</td> - <td class="tdl bl">1.4</td> - <td class="tdl bl">10</td> - <td class="tdl bl"> 7.14</td> - <td class="tdl bl br">11.6</td> -</tr> - <tr> - <td class="tdl bl">140</td> - <td class="tdl bl">11</td> - <td class="tdl bl">110</td> - <td class="tdl bl">27.2</td> - <td class="tdl bl">7.85</td> - <td class="tdl bl">2.15</td> - <td class="tdl bl">10</td> - <td class="tdl bl"> 9.09</td> - <td class="tdl bl br">12.7</td> -</tr> - <tr> - <td class="tdl bl">130</td> - <td class="tdl bl">12</td> - <td class="tdl bl">120</td> - <td class="tdl bl"> 8.3</td> - <td class="tdl bl">9.23</td> - <td class="tdl bl">0.77</td> - <td class="tdl bl">10</td> - <td class="tdl bl"> 8.33</td> - <td class="tdl bl br">10.8</td> -</tr> - <tr> - <td class="tdl bl">130</td> - <td class="tdl bl">10</td> - <td class="tdl bl">100</td> - <td class="tdl bl">30</td> - <td class="tdl bl">7.7</td> - <td class="tdl bl">2.3</td> - <td class="tdl bl">10</td> - <td class="tdl bl">10</td> - <td class="tdl bl br">13</td> -</tr> - <tr> - <td class="tdl bl">120</td> - <td class="tdl bl">11</td> - <td class="tdl bl">110</td> - <td class="tdl bl"> 9</td> - <td class="tdl bl">9.17</td> - <td class="tdl bl">0.83</td> - <td class="tdl bl">10</td> - <td class="tdl bl"> 9.09</td> - <td class="tdl bl br">10.9</td> -</tr> - <tr> - <td class="tdl bl">120</td> - <td class="tdl bl">10</td> - <td class="tdl bl">100</td> - <td class="tdl bl">20</td> - <td class="tdl bl">8.33</td> - <td class="tdl bl">1.67</td> - <td class="tdl bl">10</td> - <td class="tdl bl">10</td> - <td class="tdl bl br">12</td> -</tr> - <tr> - <td class="tdl bl">110</td> - <td class="tdl bl">10</td> - <td class="tdl bl">100</td> - <td class="tdl bl">10</td> - <td class="tdl bl">9.09</td> - <td class="tdl bl">0.91</td> - <td class="tdl bl">10</td> - <td class="tdl bl">10</td> - <td class="tdl bl br">11</td> -</tr> - <tr> - <td class="tdl bl">110</td> - <td class="tdl bl"> 9</td> - <td class="tdl bl"> 90</td> - <td class="tdl bl">22.2</td> - <td class="tdl bl">8.18</td> - <td class="tdl bl">1.82</td> - <td class="tdl bl">10</td> - <td class="tdl bl">11.1</td> - <td class="tdl bl br">12.2</td> -</tr> - <tr> - <td class="tdl bl">100</td> - <td class="tdl bl"> 9</td> - <td class="tdl bl"> 90</td> - <td class="tdl bl">11.1</td> - <td class="tdl bl">9</td> - <td class="tdl bl">1</td> - <td class="tdl bl">10</td> - <td class="tdl bl">11.1</td> - <td class="tdl bl br">11.1</td> -</tr> - <tr> - <td class="tdl bl">100</td> - <td class="tdl bl"> 8</td> - <td class="tdl bl"> 80</td> - <td class="tdl bl">25</td> - <td class="tdl bl">8</td> - <td class="tdl bl">2</td> - <td class="tdl bl">10</td> - <td class="tdl bl">12.5</td> - <td class="tdl bl br">12.5</td> -</tr> - <tr> - <td class="tdl bl bb"> 90</td> - <td class="tdl bl bb"> 8</td> - <td class="tdl bl bb"> 80</td> - <td class="tdl bl bb">12.5</td> - <td class="tdl bl bb">8.88</td> - <td class="tdl bl bb">1.12</td> - <td class="tdl bl bb">10</td> - <td class="tdl bl bb">12.5</td> - <td class="tdl bl bb br">11.25</td> -</tr> -</table> - -<p>The first and most important truth illustrated<span class="pagenum" id="Page_39">39</span> -in the table is, that, from the division of value into -labour and profits, and the mode in which profits -are always estimated, it follows necessarily, that -the quantity of labour required to produce the -wages of a given number of men, with the addition -of the profits upon these advances estimated -in labour, must always be exactly the same -as the quantity of labour which the wages will -command, and must together always make up -the constant quantity which appears in the -seventh column. But the quantity of labour -required to produce the varying wages of ten -men is, under the different circumstances supposed, -very different, as appears in the fifth -column; and it is obvious, that while the numbers -in the fifth column vary, the numbers in -the seventh column, or the quantity of labour -and profits united, cannot be constant, unless, -as the quantity of labour required to produce -the wages of ten men increases, the quantity of -profits estimated in labour diminishes exactly -in the same degree. But this, from what has -before been stated, must, under the circumstances -supposed, be the case. And it follows, -that if the natural value of a commodity may -be estimated by the labour and profits of which -it is composed, the natural value of the corn<span class="pagenum" id="Page_40">40</span> -wages of a given number of men must always -be the same. But such wages, according to -the postulate with which we commenced, must -necessarily be equal to the quantity of labour -for which they will exchange. Consequently -the value of a given quantity of labour -must, under every variety which can take -place in the fertility of the soil and the corn -wages of labour, be always constant. It is, -however, of the greatest importance to remark, -that an exact balance of labour, and of profits -estimated in labour, so as to yield always a -constant quantity, cannot take place in the production -of any one commodity or given portion -of a commodity; because any one commodity, -or given portion of a commodity, is liable to -vary in relation to labour, and such variation -will either increase or decrease the amount -of the labour and profits united. It is only -the varying wages of a given number of men -bearing, as the terms imply, a constant relation -to labour, which, under any changes in -the quantity of labour required to produce -them, can still continue of the same natural -value. And it is precisely this necessary constancy -in the natural value of the varying corn -wages of labour, which renders the labour -which a commodity will command, a standard<span class="pagenum" id="Page_41">41</span> -measure both of its natural and exchangeable -value.</p> - -<p>2dly. It appears from the Table, that given -the produce obtained by ten men, then as corn -wages rise, the value of the produce will fall, -or command less labour; and the constant -value of the advances in labour absorbing a -larger proportion of the value of the produce, -profits will fall in proportion. But when more -is produced by the same number of persons, -then unless the corn wages rise so high as exactly -to balance it, the value of the whole produce -is increased, and the rate of profits and -corn wages may both rise at the same time. -Thus while the produce is 130 quarters, as -labour rises from ten to twelve quarters, profits -fall in an opposite direction from 30 per -cent. to 8.3. per cent.; but if we compare the -wages of labour when the produce is 130 quarters, -with the wages of labour when the produce -is 150, it appears that labour may rise from -twelve to thirteen quarters, at the same time -that profits rise from 8.3. to 15.38.</p> - -<p>A third result illustrated in the Table is, that -labour being constant, all commodities into -which profits enter, which may be said to be -nearly the whole mass, must fall on the fall of -profits, and among these will, of course, be found<span class="pagenum" id="Page_42">42</span> -metallic money. Supposing, therefore, money -always to require in its production the same -quantity of labour and capital, it will regularly -fall in value in the progress of cultivation and -population; while labour being uniform in value -will rise in money price,<a id="FNanchor_10" href="#Footnote_10" class="fnanchor">J</a> and the demand for -corn increasing, compared with the demand for -labour, the money price of corn will probably -rise still more. But if the labourers were paid -at all times exactly the same quantity of corn, -(which, however, cannot be the case,) the value -of corn, like the value of wages, would be constant, -and the variations of fertility would only -show themselves in the enormous variations of -profits.</p> - -<p>Thus, when labour is paid at ten quarters -each man, the numbers in the eighth column, -or the value of a given quantity of corn, must, -it is obvious, always be the same, whatever be -the quantity produced; and when the land is -fertile, the small quantity of labour required to -produce ten quarters is balanced by the great -profits which appear in the fourth column.</p> - -<p>In the actual state of things, corn generally<span class="pagenum" id="Page_43">43</span> -rises in the progress of cultivation, not only -nominally, but really, as may be seen in the -eighth column, while labour, it is evident, can -only rise nominally.</p> - -<p>A fourth result shown in the Table is, that the -value of the corn obtained by ten men depends -mainly upon the rate of profits, which again depends -mainly upon the demand and supply of -corn compared with labour. If corn be in such -demand, that notwithstanding the fertility of -the soil, a small quantity of it comparatively -will purchase the labour required, profits will -be very high, and the value of the produce will -greatly exceed the constant value of the wages -of the labour advanced; but if the supply of -corn be so great, compared with labour, that a -large quantity of it is required to purchase the -given quantity of labour, profits will be low, -and the excess of the value of the produce -above the constant value of the advances in -wages will be inconsiderable.</p> - -<p>Thus, when the produce is 150 quarters, if -corn be in such plenty that each labourer is -awarded thirteen quarters, the profits of stock -will be only 15.38 per cent.; and this rate of -profit, added to the constant value of the advances -in labour, which are represented by 10,<span class="pagenum" id="Page_44">44</span> -will make the natural value of the produce -equal to 11.53. But if corn, notwithstanding -the fertility of the soil, be only supplied in such -quantities, compared with labour, as to award -the labourer no more than ten quarters, the rate -of profits, instead of 15.38 per cent., will be 50 -per cent., and the value of the produce, instead -of being 11.53, will be 15.</p> - -<p>This shows how greatly the natural value of -commodities depends upon the average state -of the demand and supply, and completely -confirms the position in my last work, that the -only difference between natural and market -prices is, that the former are regulated by the -average and ordinary relations of the demand to -the supply, and the latter, when they differ -from the former, upon the accidental and extraordinary -relations of the demand to the supply.</p> - -<p>Fifthly, it follows, from the constant value of -labour, that,</p> - -<p>Given the value of money in different countries, -the natural prices of commodities, in -which the same quantities of labour have been -employed, will depend upon the rate and quantity -of profits.</p> - -<p>Given the rate and quantity of profits, and -the value of money, the natural prices of commodities -in different countries will depend<span class="pagenum" id="Page_45">45</span> -upon the quantity of labour employed upon -them.</p> - -<p>And given the quantity of labour employed -on them, and the rate and quantity of profits, -the natural prices of commodities will depend -upon the value of money.</p> - -<p>But in reality none of the ingredients of natural -or money price are given, excepting the -natural value of labour, and consequently the -money prices of commodities which regulate -the ordinary rate at which different countries -exchange their commodities with each other, -will be determined partly by the quantity of -labour employed upon them, partly by the ordinary -rate of profits, and partly by the value -of money.</p> - -<p>The value of metallic money, it has before been -stated, while it continues to be obtained by the -same quantity of labour and capital, must always -fall with the fall of profits, and will consequently -have a strong tendency to fall with the progress -of cultivation and improvement; but as few nations -comparatively have mines of their own, -the supplies which they obtain of the precious -metals must be purchased by their exportable -commodities; and these are produced and exported -under such a variety of circumstances, -in respect to cost, and the value of the same<span class="pagenum" id="Page_46">46</span> -amount of the precious metals is further so -much affected by the demand for corn and labour, -the state of credit, paper currencies, -taxation, and other circumstances, that no rule -can safely be laid down on the subject.</p> - -<p>Generally the value of money is the lowest -in the richest and most manufacturing countries; -but this is not always the case; and a country -which raises an abundance of raw produce at a -small expense of labour and profits, while its -money value is kept up by a ready sale for it -in foreign markets, and a continued demand -for labour, may have the value of its money -very low, although it is not rich or manufacturing. -This is the case with the United States -of America, where, owing to the low value of -money, or high money price of labour, there -are no doubt some commodities which, though -produced by a less value of labour and profits, -cannot be exported to England on account of -the higher value of money in England; while -we know that there are many other products -which are obtained by so much a smaller quantity -of labour and profits as more than to -counterbalance the higher value of money in -England, or the higher money price of labour -in the United States.</p> - -<p>In the same manner there are no doubt many<span class="pagenum" id="Page_47">47</span> -commodities which, though obtained in England -by a much less quantity of labour and -profits than in India, cannot be exported to -that country on account of the very high value -of money in India; while, on the other hand, -there are a few commodities in England in -which the saving of labour and the effects of -capital and skill have been so great, as to -allow of their exportation from a country -where the money wages of labour are two -shillings a day, to one where they are only fourpence; -that is, from a country where the value -of money is six times lower than in the country -to which the commodities are sent.</p> - -<p>On the same principle, commodities may be -imported from India into England, although the -same commodities might be produced in England -by a much less quantity of labour and -profits, the low value of money in England -more than compensating the greater quantity -of labour and profits employed in India.</p> - -<p>It is evident, therefore, that the values which -determine what commodities shall be exported, -and what imported, depend, as before stated, -partly upon the quantity of labour employed -in their production, partly upon the ordinary -rates of profits in each country, and partly -upon the value of money.</p> - -<p>A sixth result illustrated in the Table is the<span class="pagenum" id="Page_48">48</span> -important distinction between cost and value. -The two last columns show the value of a given -quantity of corn, and the value of the product -of a given quantity of labour, under all the variations -which may be supposed of fertility and -corn wages. The difference between the numbers -in the last column, and the uniform number -expressing the value of labour, shows exactly -the difference between the value of the -labour which has been employed upon a production, -or its cost, and the labour which that -production will command, or its natural and -exchangeable value; which, where profits and -wages are alone concerned, must be exactly -equal to the additional value occasioned by -the amount of profits.</p> - -<p>The reader will be aware that neither the -preceding Table, nor any thing which has been -said, tends in any degree to contradict the -acknowledged truth that different <em>kinds</em> of labour -are of very different natural and exchangeable -value. It will be further allowed, that -even the same kind of labour, and the kind -which has been especially referred to, namely -common agricultural labour, may, under particular -circumstances, and in particular places, -vary in value from a partial or temporary state<span class="pagenum" id="Page_49">49</span> -of demand and supply. We well know, -that, from a partial and temporary demand -at a particular period of the year, summer -wages are of a very different value from winter -wages; but in reality summer wages form a -very important part of the wages of the whole -year. They are generally employed to pay the -rent of the house, or to purchase the necessary -clothing for the family. They could not be -essentially diminished, without altering the -condition of the labourer throughout the year, -or the rate of the increase of population. And -if the labourer earned a smaller quantity of corn -throughout the year, with an undiminished produce, -it appears from the Table that the value -of that corn would still remain the same, owing -to the increased value of those profits of which -it was in part composed.</p> - -<p>With regard to the variations in the value of -labour in different parts of the same country, -if they are not partial, or temporary, and consequently -exceptions to the general average, -they are all resolvable into those differences in -the value of money, which unquestionably take -place in different parts of the same country, -and arise from a want of demand for corn and -labour, and a want of commodities to exchange<span class="pagenum" id="Page_50">50</span> -with those parts of the country which are richer -in the precious metals.</p> - -<p>Having obtained a measure of the value of -commodities in their more simple forms, we -may apply this measure to the ingredients -which compose the most complicated productions, -and estimate all the advances which consist -of accumulated profits, rents, tithes, and -taxes in labour. In the case of taxes on the -wages of labour, or an increase in the prices of -those other necessaries of the labourer, besides -food, which may occasion the sale of a greater -quantity of the produce, in order to pay the -same number of labourers, as these increased -advances will have the same effect upon profits -as a simple increase of wages, they will in no -respect interfere with the constant value of -labour, though an increase of wages, under -such circumstances, will be of no advantage to -the labourer.</p> - -<p>Cases will of course frequently occur, in -which the advances which do not consist of -wages vary in a different degree from wages; -but still the value of labour will remain constant. -If the produce, instead of being obtained -by the direct labour of a certain number -of men, were obtained by the direct labour of<span class="pagenum" id="Page_51">51</span> -only a part of this number, together with an -amount of materials, or other advances consumed -in the same time, equal to the labour -of the other part, then upon a rise in the -corn wages of labour, if the other advances -were to fall, or not to be worth so much labour -as before, it is obvious that the profits of stock -would not fall so much as if the same rise of -corn wages had taken place, when all the advances -had been in labour; and it might be -thought at first that profits not falling in proportion -to the rise of labour, the value of labour -would not continue the same. But it will be -observed, that, in all cases of this kind, there -will be a less value of labour, which is equivalent -to a less quantity of it employed to obtain -the same produce; and a less quantity of -labour altogether being consequently necessary -to produce the food of the labourer, than if -labour alone had been employed, the higher -profits, or smaller diminution of the former -profits, will only just be such as to maintain -labour of a constant value.</p> - -<p>Let us suppose, for instance, that 120 quarters -of corn are produced by ten men. If each -man were paid ten quarters, profits would be -20 per cent.; and if wages were increased to -eleven quarters, profits would fall from 20 per<span class="pagenum" id="Page_52">52</span> -cent. to 9.09 per cent. Now supposing, that, -instead of ten men being directly employed, -five only are so employed, and that the other -advances consist of capital which will continue -of the same value as the corn;<a id="FNanchor_11" href="#Footnote_11" class="fnanchor">K</a> then, while -each labourer earns ten quarters, and the other -capital advanced is worth the labour of five -men so paid, profits will be, as before, 20 per -cent. But if the labourer be paid eleven -quarters instead of ten, profits will not fall, as -before, from 20 per cent. to 9.09 per cent., but -only from 20 per cent. to 14.28 per cent.; because -the advances, instead of being 110, will -only be 105; and the value of these advances -estimated in labour paid at eleven quarters -each man, being only 9.54, instead of 10; 9.54 -may be considered as the number of persons -employed. Then if 120 quarters be produced -by 9.54 men, 105 quarters will be produced by -8.34. But 8.34, increased by a profit of 14.28, -will make 9.54, the quantity of labour employed, -and show that the natural value of -labour is always proportioned to its quantity. -In the former case, when ten men were employed -at eleven quarters, as the advances<span class="pagenum" id="Page_53">53</span> -were 110 quarters, instead of 105, the labour -required to produce the food of the labourer -was 9.166, and consequently a profit of only -9.09 will be sufficient to make up ten, the -number of men employed, and thus equalize -the value with the quantity.</p> - -<p>In the case of fixed capital of considerable -duration, there is always a probability that it -will alter in value in reference to the quantity -of labour, and of profits estimated in labour, of -which it was composed when first produced; -but after having advanced so far in establishing -the labour which a commodity will command, -as the measure of its value, we are entitled to -consider the present value estimated in labour -of any fixed capital which is about to be employed -in production, as representing the quantity -of accumulated labour actually so applied. -It is further necessary, as before stated, to -reckon the remaining value of the fixed capital -as a part of the produce resulting from the -whole of the accumulated and immediate labour -employed. When, however, these corrections -have been made, all the cases in which fixed -capital enters, which may be said to include -the great mass of commodities, will be found to -answer to the theory as accurately as the simplest -case that can be stated.</p> - -<p>The exceptions, therefore, to the general proposition<span class="pagenum" id="Page_54">54</span> -that the labour which commodities will -command may be considered as a standard -measure of their value are only apparent, not -real, and may all be consistently explained.</p> - -<p>And if the proposition be true, a standard -measure of value is of so much importance in -political economy, and the one proposed is at -all times so very ready and easy of application,<a id="FNanchor_12" href="#Footnote_12" class="fnanchor">L</a> -that there is scarcely any part of the science in -which it will not tend to simplify and facilitate -our inquiries.</p> - -<p>To advert shortly to a few points on which -there have been some differences of opinion.</p> - -<p>On the subject of rents, such a standard -would determine, among other things, that, as -the increase in the <em>value</em> of corn is only measured -by a decrease in the corn wages of -labour, such increase of value is a very inconsiderable -source of the increase of rents compared -with improvements in agriculture; and -on the same principle that, if tithes do not fall -mainly on the labourer, the acknowledged diminution -in the <em>corn</em> rents of the landlord,<span class="pagenum" id="Page_55">55</span> -occasioned by tithes, cannot be balanced by -an increase of their value, and that, consequently, -tithes must fall mainly on the landlord.</p> - -<p>On the subject of labour it would determine, -that the increasing <em>value</em> of the funds -destined for the maintenance of labour can -alone occasion an increase in the demand for -it, or the will and power to employ a greater -number of labourers; and that it is consistent -with theory, as well as general experience, -that high corn wages, in proportion to the -quantity of work done, should frequently occur -with a very slack demand for labour;<a id="FNanchor_13" href="#Footnote_13" class="fnanchor">M</a> or, in -other words, that when the <em>value</em> of the whole -produce falls from excess of supply compared -with the demand, it cannot have the power of -setting the same number of labourers to work.</p> - -<p>On the subject of profits, it would show, that -they are determined, not by the varying value -of a given quantity of labour compared with -the constant value of the commodities which -it produces, but, as is more conformable to<span class="pagenum" id="Page_56">56</span> -our experience, by the variable value of the -commodities produced by a given quantity of -labour, compared with the constant value of -such labour; and that profits never, on any -occasion, rise or fall, unless the value of the produce -of a given quantity of labour rises or falls, -either from the temporary or ordinary state of -the demand and supply.</p> - -<p>On the subject of the distinction between -wealth and value, it would show, that though -they are by no means the same, they are much -more closely connected than they have of late -been supposed to be; and that the best practical -measure of the relative wealth of different -countries would be the quantity of common -labour which the value of the whole annual -produce of each country would enable it to -command at the actual price of the time, which -in some rich countries might amount to above -double the number of families actually employed, -and in poor countries might not greatly -exceed such number.</p> - -<p>On the subject of foreign trade, it would -show that its universally acknowledged effect -in giving a stimulus to production, generally, -is mainly owing to its increasing the value of -the produce of a country’s labour by the extension -of demand, before the value of its labour<span class="pagenum" id="Page_57">57</span> -is increased by the increase of its quantity; -and that the effect of every extension of demand, -whether foreign or domestic, is always, -as far as it goes, to increase the average rate of -profits<a id="FNanchor_14" href="#Footnote_14" class="fnanchor">N</a> till this increase is counteracted by a -further accumulation of capital.</p> - -<p>On the subject of the accumulation of capital -it would show that if the increase of capital be -measured by the increase of its materials, such -as corn, clothing, &c., then it is obvious that -the supply of these materials may, by saving, -increase so rapidly, compared with labour and -the wants of the effective demanders, that with -a greater quantity of materials the capitalist -will neither have the power nor the will to set -in motion the same quantity of labour, and that -consequently the progress of wealth will be -checked; but that if the increase of capital be -measured, as it ought to be, by the increase of -its power to command labour, then accumulation -so limited cannot possibly go on too fast.</p> - -<p>On the general subject of demand and supply,<span class="pagenum" id="Page_58">58</span> -it would show that they must be restored -to their universal empire, both in reference to -the prices of commodities, and the dependence -of the progress of wealth on the due proportion -maintained between them. If the cost of a -commodity be considered as composed exclusively -of the actual advances of the capital -required for its production, which seems to be -the most natural and correct mode of viewing -it,<a id="FNanchor_15" href="#Footnote_15" class="fnanchor">O</a> then it is obvious, that as both the prices and -values of commodities are proportioned to these -advances, with the <em>addition</em> of profits very variable -in their amount, neither of them can be -determined by these advances alone, or by the -costs of production so defined. We must therefore -have recourse to demand and supply. -And on the other hand, if profits be included in -the costs of production, then, as it follows, from -the constancy of the value of labour, that ordinary -profits are determined by the ordinary -demand compared with the ordinary supply -of the products of the same quantity of -labour, the certain conclusion must be, that<span class="pagenum" id="Page_59">59</span> -demand and supply enter powerfully into the -costs of production according to this latter definition, -and that therefore their dominion as to -prices and value is absolutely universal.<a id="FNanchor_16" href="#Footnote_16" class="fnanchor">P</a></p> - -<p>Nor would they be less so in their effect on -the general progress of wealth. If commodities -and the materials of capital increase faster than -the effectual demand for them, profits fall prematurely, -and capitalists are ruined without a -proportionate benefit to the labouring classes, -because an increasing demand for labour cannot -go on under such circumstances. If the value -of commodities and the materials of capital -increase for some time without an increase of -their quantity, the labouring classes must soon -be supported on the lowest amount of food on<span class="pagenum" id="Page_60">60</span> -which they will consent to keep up their actual -number; and the main part of the population -would suffer severely without any proportionate -benefit to the capitalists; because the value of -their capitals, measured by the labour which -they can command, would shortly be incapable -of further increase. In either of these cases a -decided check would be given to the progress -of wealth, which progress must necessarily be -the greatest, when the joint product of the -capitalist and labourer, which the state of the -land and the skill with which it is worked -enable them to obtain, is so divided between -them, that in the progress of cultivation and -improvement any unnecessary or premature fall -either of profits or corn wages is prevented. -But this can only be accomplished by a proper -proportion of the supply to the demand, that -is, by an accumulation so proportioned to the -actual consumption of produce by those who -can make an effectual demand for it, as to occasion -the greatest permanent annual increase -in the value of the materials of capital.</p> - -<p>The reader of my last work, in which I laid -down as my rule, to admit no principles of Political -Economy as just which were inconsistent -with general experience, will be aware that the -conclusions to which I have here shortly adverted,<span class="pagenum" id="Page_61">61</span> -as following necessarily from the constancy -of the value of labour, are almost exactly -the same as the conclusions of that work. -And the reason is, that although at that time I -did not think that the labour which a commodity -would command could, with propriety, be -considered as a <em>standard</em> measure of value, -yet I thought it the nearest approximation to -a standard of any one object known, and consequently -applied it, on almost all occasions, to -correct the errors arising from the application -of more variable measures. The conclusions, -therefore, of my former and present reasonings -were likely to be nearly the same, although the -premises might now admit of further correction -and illustration, and the conclusions might be -pronounced with greater precision and certainty.</p> - -<p>It was my intention to have done this much -more fully than in the present treatise; but -having been interrupted by unforeseen circumstances, -and being unwilling to delay any longer -the publication of this essential part of my -proposed plan, I have determined to submit it -to the public in its present form; and will only -add here a few observations on a question -closely connected with it, which has lately -excited much interest and discussion.</p> - -<p>Among the questions for the determination<span class="pagenum" id="Page_62">62</span> -of which a standard measure of value is most -particularly required, are those which relate to -alterations in the value of the currency. We -know perfectly well, from experience, that -commodities are subject to great variations of -price, and that many of these variations may -arise from causes which alter the natural value -of these commodities, and are equally applicable -to a large mass of them, as to a very few. -On the supposition of a large mass being altered, -any article which had retained the same natural -value, would have its power of purchasing considerably -affected; but this would be owing to -an alteration in the value of the mass of commodities, -and not in the value of the article, which -by the supposition remains the same. It follows, -that although money may increase in its -power of purchasing, it does not necessarily -increase in value. But in estimating the value -of money, some criterion or other must be referred -to. If we cannot refer to the mass of -commodities, we must refer to some one object, -and this object can only be labour. Our present -inquiry, therefore, must be into the causes -which affect the value of the precious metals as -compared with labour.</p> - -<p>These causes are of two kinds:—first, those<span class="pagenum" id="Page_63">63</span> -which occasion a high or low rate of profits, -which, as connected with the progressive cultivation -of poorer land, and operating universally -and necessarily on the precious metals in common -with all other commodities, and raising or -lowering them with regard to labour, may be -denominated the primary and necessary cause -of the high or low value of metallic money.—And -secondly, those which depend on the fertility -and vicinity of the mines; the different -efficiency of labour in different countries; the -abundance or scarcity of exportable commodities; -and the state of the demand and supply -of commodities and labour compared with money; -which may be denominated the secondary -and incidental causes of the high or low value -of metallic money.</p> - -<p>These two different kinds of causes will sometimes -act in conjunction, and sometimes in -opposition, so that it may not always be easy -to distinguish their separate effects; but as -these effects have really a different origin, it is -desirable to keep them as separate as we can.</p> - -<p>The marks which distinguish a fall in the -value of the precious metals, arising from the -primary cause, are,—a rise in the money price -of raw produce and labour, without a general -rise in the price of wrought commodities. -All of them, indeed, as far as they are composed<span class="pagenum" id="Page_64">64</span> -of raw produce, will have a tendency to -rise; but, in a large class of commodities, this -tendency to rise will be more than counterbalanced -by the effect of the fall of profits.—Some -therefore will rise, and some will fall, as -I stated in my last work,<a id="FNanchor_17" href="#Footnote_17" class="fnanchor">Q</a> according to the nature -of the capitals employed upon them, compared -with those which produce money; and -while the money prices of corn and labour very -decidedly increase, the prices of commodities, -taken on the average, may possibly remain not -far from the same.</p> - -<p>On the other hand, when the value of metallic -money falls, from the secondary causes -above noticed, there will be a tendency to a -proportionate rise of all commodities as well as -of corn and labour, though in some cases it -may take a considerable time before it is completely -effected. And, in general, whenever a -fall in the value of money takes place, without -a fall in the rate of profits, an event which is -generally open to observation, it is to be attributed -to incidental and secondary causes affecting -the relations of money to labour, and -not to that which is connected with the taking -of poorer land into cultivation.</p> - -<p>Of these two classes of causes the second<span class="pagenum" id="Page_65">65</span> -produces much the greatest part of those differences -in the value of metallic money, which -are the most observable in different countries, -and at different periods in the same country. -If India and England had each of them mines -of equal natural fertility, the superior efficiency -of English labour, assisted by machinery, would -extract a much greater quantity of metal from -such mines; and the money price of labour -might be three or four times higher, and the -value of money three or four times lower in -England than in India.</p> - -<p>The same effect is, at present, practically -produced by the skill and machinery employed -on the manufactures with which England purchases -her gold. If she can prepare exportable -commodities which are in demand abroad, -with much less labour than other nations, she -will be able to buy gold at a much lower -natural value, and will continue to import it -under favourable exchanges, till its value falls in -proportion.</p> - -<p>It is farther established by experience, that -a brisk or slack demand for commodities and -labour, and particularly for corn, has a considerable -effect on the value of gold. Such a demand -not only occasions a more rapid circulation -of money, and enables the same quantity<span class="pagenum" id="Page_66">66</span> -to perform a greater number of transactions, -but calls into action a greater quantity of credit -and private paper,<a id="FNanchor_18" href="#Footnote_18" class="fnanchor">R</a> so that a general rise -of bullion prices, including labour, seems to be -at all times possible, even without any fresh -importations of the precious metals; and the -only practical limit to this rise, is the turn of -the exchange, and the impossibility of maintaining -the exchanges nearly at par beyond a -certain elevation of labour and commodities.</p> - -<p>The secondary and incidental causes here -enumerated, as affecting the value of gold, often -completely overcome the effects arising from -the primary cause. The state of bullion prices -in most of the countries of the commercial -world make it evident, that the efficiency of -labour, and the abundance of exportable commodities, -are much more powerful in lowering -the value of bullion in the countries where they -prevail, than high profits in raising it; and the -same appears to be true, in reference to an increased -demand for corn and labour.</p> - -<p>It cannot be doubted that the rate of interest<span class="pagenum" id="Page_67">67</span> -and profits was comparatively high during the late -war, and this high rate of profits would naturally -have a tendency to lower the bullion price of -labour; but this was more than counterbalanced -by the tendency of a brisk demand for corn -and labour to raise money prices generally, including -labour, and the consequence was a fall, -during the greatest part of the time, in the value -of bullion.</p> - -<p>It can as little be doubted, that the rate of -interest and profits has fallen since the war, -and this low rate of profits would have a natural -tendency to raise the bullion price of -labour; but this has been more than counterbalanced -by the tendency of a slack demand -for corn and labour to lower prices generally, -and the consequence has been a rise in the -value of gold, and a still greater rise in the -value of the currency.</p> - -<p>This rise, however, in the value of the currency, -has been by no means so considerable -as those are inclined to make it, who would -measure it by the fall of agricultural produce; -nor is it so inconsiderable as those imagine who -would measure it solely by the difference between -paper and gold. But whether this difference -is the whole of what can be fairly -attributed to the Bank Restriction and the return<span class="pagenum" id="Page_68">68</span> -to cash payments, or not, it may by no -means be the whole change which has taken -place in the value of the currency, when compared -with an object which has not changed.</p> - -<p>It would be very desirable to be able to form -an accurate estimate of the rise and fall which -has taken place in the bullion price of labour -for the last thirty years; but unfortunately, -during the latter part of the period, no general -estimates of the price of labour have been -made, at least none that have come to my knowledge; -and there is reason to think that, under -the late stagnation in the demand for agricultural -labour, the common rate of wages in -England has been more than usually interrupted -by the operation of the poor laws. On this -account, I have made some inquiries respecting -wages in Scotland, and have obtained a most -valuable communication; but before I refer to -it particularly, it may be useful to consider the -results of the data we possess in England. The -rise in the bullion price of labour from 1790 to -1810 and 11, may be established upon satisfactory -grounds, although the amount of the -fall which has since taken place may be a -matter of considerable uncertainty.</p> - -<p>According to the communications to the -Board of Agriculture, the price of labour, in<span class="pagenum" id="Page_69">69</span> -1790, was 8<i>s.</i> 1<i>d.</i> per week. In 1796, Sir F. -M. Eden, in his work on the Poor, stated it at -8<i>s.</i> 11<i>d.</i> per week. In 1803, the communications -to the Board of Agriculture make it 11<i>s.</i> 5<i>d.</i>, -and in 1810 and 11, according to satisfactory -returns obtained by Arthur Young, it was -14<i>s.</i> 6<i>d.</i><a id="FNanchor_19" href="#Footnote_19" class="fnanchor">S</a> This was a steady and very great rise -in the price of agricultural labour during the -course of twenty years. But in 1810 and 11, -paper had separated from gold to a considerable -extent. Taking an average of the market prices -of gold during these two years, this price -was £4. 13<i>s.</i> and reducing the 14<i>s.</i> 6<i>d.</i> currency -to a bullion price, it will appear that the -bullion wages of labour in 1810 and 11 were a -little above 12<i>s.</i> The bullion price of labour -had therefore risen 50 per cent. Now, on the -supposition that manufacturing and mercantile -labour continued to bear the same proportion -to agricultural labour as before,<a id="FNanchor_20" href="#Footnote_20" class="fnanchor">T</a> it is obvious -that there would be a difference of 50 per cent.<span class="pagenum" id="Page_70">70</span> -between the quantity of labour and profits with -which an ounce of gold could be purchased -at the former period, compared with the latter; -that is, while labour was 8<i>s.</i> 1<i>d.</i> per week, it -would require a piece of muslin, which would -command above nine and a half weeks labour, -to purchase an ounce of gold; but when wages -were 12<i>s.</i> per week, a piece of muslin, which -would command little more than six and a -half weeks labour, would be sufficient for the -purpose. The natural value of bullion, therefore, -the quantity of English labour and profits -of which it was composed, must have fallen to -that extent.</p> - -<p>Mr. Tooke, in his late valuable publication, -after stating very justly that an unusual proportion -of unfavourable seasons must have had -a considerable effect in raising the prices of -corn and labour during the period adverted to, -goes on to “ask upon what ground of fact or -reasoning can the high prices included in such a -period be ascribed, in fairness, to alterations in -the currency, beyond the degree indicated by the -difference between paper and gold, when, after -a sufficient time has elapsed for the subsidence -of the extraordinary effects of such an unusual -succession of bad seasons, there is a restoration -to a level even somewhat lower than that from<span class="pagenum" id="Page_71">71</span> -which the rise is assumed to have taken place, -and to have continued progressively.”</p> - -<p>Of the subsidence here alluded to, before -1814, Mr. Tooke has certainly not given proofs -sufficiently general; but without dwelling on -this point, it appears to me that the question of -the fall in the value of the currency including -the gold, is exclusively a question of fact, and -must be referred to some criterion. It is a -very intelligible thing to say that paper has -fallen, if it has fallen with regard to the gold -which it professes to represent; but it is not -intelligible to say that gold has not fallen, when -it is acknowledged to have fallen both with regard -to its power of purchasing generally, and its -power of commanding labour; unless a reference -can be made for the proof of it to some more -satisfactory criterion. A season of scarcity will -make corn dear, and a season of plenty cheap, -without necessarily affecting labour in either -case, as is shown by Adam Smith, and proved -by repeated experience. But if seasons of -scarcity occur so frequently as to raise generally -the bullion price of labour, it must of necessity -be accompanied by a power of purchasing -bullion with a smaller quantity of labour -and profits; otherwise the event could not<span class="pagenum" id="Page_72">72</span> -occur. Whenever it does occur, the natural -value of bullion falls.<a id="FNanchor_21" href="#Footnote_21" class="fnanchor">U</a></p> - -<p>The observations here made, with a view to -place the controversy respecting the alterations -in the currency on its proper ground, and to -make the necessary distinction between facts -and the causes which may have produced them, -apply still more strongly to the publication -of Mr. Blake, in much of the reasoning of which -I entirely concur. He proposes to prove that -it was the gold which rose, and not the paper -which fell during the war, although he acknowledges -as a matter of fact, that almost all prices, -including labour, rose not only in paper but in -gold. This has, no doubt, the air of a contradiction, -according to all the common modes of estimating -the value of money; and it certainly -is not removed by showing that the main cause -of these high prices was a great demand compared -with the supply of commodities—a cause -which, involving as it always does, more transactions -on credit, and a more rapid circulation<span class="pagenum" id="Page_73">73</span> -of currency, is one of the most legitimate -causes of a fall in the value of money.</p> - -<p>Mr. Blake, however, is certainly right in -his view of the effects of an unfavourable exchange -on the price of gold, when it ceases to -form a part of the circulation. It is not only -possible that from this cause gold might for a -time rise in value much beyond the expense of -transporting it; but as a matter of fact, this -did unquestionably occur at certain periods -during the war. There is no account of the -price of agricultural labour in England subsequently -to 1811. Probably it did not rise any -more; but if it did, judging from what took place -in Scotland, it did not rise sufficiently to balance -the subsequent rise in the market price of -gold, which was from £4. 15<i>s.</i> in 1811, to -£5. 8<i>s.</i><a id="FNanchor_22" href="#Footnote_22" class="fnanchor">V</a> in 1813. Consequently, in 1813, as -compared with 1811, the value of gold must -have risen considerably; and on the supposition -that the price of labour did not rise after 1811, -it would appear that the natural and exchangeable -value of gold, as measured by the standard, -rose above 13½ per cent.</p> - -<p>The rise of gold from the sudden fall of the -exchange in consequence of Buonaparte’s return<span class="pagenum" id="Page_74">74</span> -from Elba was still more remarkable. The -price had been as low, in the spring of 1815, as -4<i>l.</i> 9<i>s.</i>, and without any known change in the -currency price of labour, it rose suddenly to -5<i>l.</i> 5<i>s.</i>, or 18 per cent.; and consequently, to -purchase an ounce of gold it was necessary at -that time to give commodities worth 18 per -cent. more of agricultural labour than it might -have been purchased for a month or two before. -Whatever might have been the case with -the paper, there could not, on any view of the -subject, be the slightest foundation for the supposition -of a sudden abundance and cheapness -of labour just before the battle of Waterloo. In -fact, agricultural labour had not fallen, and manufacturing -labour was higher than usual; so -that even without considering labour as a -standard, it must have been acknowledged, that, -of these two objects which had altered in relative -value, it was the gold which had risen, -not the labour which had fallen.</p> - -<p>In attempting to measure the <em>rise</em> in the -value of the currency since the period of the -high prices, we shall be greatly assisted by the -following very valuable document respecting -the price of labour in the county or stewartry -of Kircudbright. It is considered that the -prices in this table represent pretty nearly -(though they are rather below) the wages in<span class="pagenum" id="Page_75">75</span> -other parts of Scotland. The labourers have -no other allowances whatever except the daily -wages specified in the table. In the intermediate -years not quoted the wages remained -stationary at the rates last mentioned; and -when any change took place, the period of such -change and the degree of it are regularly -stated.</p> - -<table class="narrow" summary="Labour rates"> - <tr> - <td class="tdc bt bb br">Years.</td> - <td class="tdc bt bb bl br">Rate per day<br />in winter.</td> - <td class="tdc bt bb bl">Rate per day<br />in summer.</td> -</tr> - <tr> - <td class="tdc br">1760</td> - <td class="tdc br"> 4<i>d.</i></td> - <td class="tdc"> 6<i>d.</i></td> -</tr> - <tr> - <td class="tdc br">1765</td> - <td class="tdc br"> 6<i>d.</i></td> - <td class="tdc"> 8<i>d.</i></td> -</tr> - <tr> - <td class="tdc br">1770</td> - <td class="tdc br"> 8<i>d.</i></td> - <td class="tdc">10<i>d.</i></td> -</tr> - <tr> - <td class="tdc br">1772</td> - <td class="tdc br"> 8<i>d.</i></td> - <td class="tdc">12<i>d.</i></td> -</tr> - <tr> - <td class="tdc br">1776</td> - <td class="tdc br"> 7<i>d.</i></td> - <td class="tdc"> 9<i>d.</i></td> -</tr> - <tr> - <td class="tdc br">1780</td> - <td class="tdc br"> 8<i>d.</i></td> - <td class="tdc">10<i>d.</i></td> -</tr> - <tr> - <td class="tdc br">1791</td> - <td class="tdc br"> 8<i>d.</i></td> - <td class="tdc">11<i>d.</i></td> -</tr> - <tr> - <td class="tdc br">1793</td> - <td class="tdc br"> 9<i>d.</i></td> - <td class="tdc">12<i>d.</i></td> -</tr> - <tr> - <td class="tdc br">1798</td> - <td class="tdc br">11<i>d.</i></td> - <td class="tdc">14<i>d.</i></td> -</tr> - <tr> - <td class="tdc br">1799</td> - <td class="tdc br">12<i>d.</i></td> - <td class="tdc">15<i>d.</i></td> -</tr> - <tr> - <td class="tdc br">1800</td> - <td class="tdc br">14<i>d.</i></td> - <td class="tdc">16<i>d.</i></td> -</tr> - <tr> - <td class="tdc br">1802</td> - <td class="tdc br">16<i>d.</i></td> - <td class="tdc">18<i>d.</i></td> -</tr> - <tr> - <td class="tdc br">1811</td> - <td class="tdc br">18<i>d.</i></td> - <td class="tdc">22<i>d.</i></td> -</tr> - <tr> - <td class="tdc br">1812</td> - <td class="tdc br">20<i>d.</i></td> - <td class="tdc">24<i>d.</i></td> -</tr> - <tr> - <td class="tdc br">1816</td> - <td class="tdc br">18<i>d.</i></td> - <td class="tdc">22<i>d.</i></td> -</tr> - <tr> - <td class="tdc br">1817</td> - <td class="tdc br">16<i>d.</i></td> - <td class="tdc">20<i>d.</i></td> -</tr> - <tr> - <td class="tdc br">1819</td> - <td class="tdc br">15<i>d.</i></td> - <td class="tdc">18<i>d.</i></td> -</tr> - <tr> - <td class="tdc br">1822</td> - <td class="tdc br">12<i>d.</i></td> - <td class="tdc">15<i>d.</i></td> -</tr> -</table> - -<p>In 1812, farm servants boarded in the house -received from 14<i>l.</i> to 22<i>l.</i> a year; women servants -from 5<i>l.</i> to 8<i>l.</i> At present, (April, 1823,) -men receive from 10<i>l.</i> to 14<i>l.</i>, and women from -3<i>l.</i> 10<i>s.</i> to 6<i>l.</i></p> - -<p>Masons’ wages per day were three shillings -in 1812, and are now half-a-crown.</p> - -<p>All work done by the piece, such as building -stone fences, cutting ditches either for -fences or drains, making roads, &c. may be<span class="pagenum" id="Page_76">76</span> -done at a greater reduction of price than the -fall in the rate of labour by the day. Work -is now performed more frequently by the -piece; and the best labourers are employed -by the day; while the inferior workmen, and -those unable from age, or other causes, to perform -a full day’s work, are turned over to work -by the piece. Agricultural affairs are under -such depression, that the work is curtailed, -and the competition for work is thereby increased.<a id="FNanchor_23" href="#Footnote_23" class="fnanchor">W</a></p> - -<p>The first thing that strikes us in the table is -the very remarkable rise of labour in Scotland -from 1760—much greater than in England, and -much greater than in proportion to the rise in -the price of corn. This was no doubt owing in -part to the comparatively unimproved state of -the district in question, and of Scotland in -general at the earliest period adverted to. But -to go no farther back than 1790, the period -with which we commenced in England, it appears -that the rise from 1790 to 1811, was considerably -greater than in England, and nearly -in proportion to the rise in the price of wheat.<span class="pagenum" id="Page_77">77</span> -If, indeed, we take the price of labour as mentioned -in the table for 1812, and compare it -with the average price of wheat for the four -years from 1812 to 1815 inclusive, during -which period the same price of labour seems -to have continued, it will appear, that labour, -taking summer and winter wages together, rose -in the proportion of from 19<i>s.</i> to 44<i>s.</i>, while -wheat rose from 43<i>s.</i> in 1792, (according to the -average of England and Wales, which commences -with that year,) to 88<i>s.</i> and therefore -labour rose decidedly more than wheat, except -in reference to the peculiarly high price of -wheat in 1812.</p> - -<p>Taking the currency price of labour in Scotland -as having risen from 9½<i>d.</i> to 22<i>d.</i>, and reducing -the 22<i>d.</i> to its value in bullion, the -average price of bullion in that year being 5<i>l.</i> 1<i>s.</i>, -it will appear, that the bullion price of labour -in Scotland rose, in the interval between 1790 -and 1812, from 9½<i>d.</i> to 16½<i>d.</i>, or nearly 73 per -cent. And consequently, the same quantity of -gold for which it would have been necessary to -give commodities worth 173 days labour in -1790, might be purchased for 100 days labour -in 1812; or the value of the currency estimated -in gold might be considered as having fallen in -that proportion.</p> - -<p>In 1812, the bullion price of labour as above<span class="pagenum" id="Page_78">78</span> -stated was 16½<i>d.</i>; it has since fallen to 13½<i>d.</i>, -or in the proportion of from 100 to 81·8—rather -more than 18 per cent. This view of it shows most -clearly the change in the bullion value of the -currency since 1812. But if we wish to estimate -the whole fall which has taken place in the -currency, and then subtract what is due to the -difference between paper and gold, it will appear -that the whole fall since 1812, estimated on the -currency wages of 1812, has been rather less -than 39 per cent.; of which, if the average difference -between paper and gold in the year 1812 -was as 101 to 78, about 23 per cent. would -belong to the paper, leaving about 16 per cent. -for the fall in the currency independently of the -excess of paper prices above gold prices. The -apparent difference in the results of these estimates -arises merely from the per centage in the -latter case being taken on a higher number.</p> - -<p>I stated before, that I was not aware of any -data on which reliance could be placed respecting -the amount of the fall of agricultural wages -in England since the termination of the war; -but on the supposition that the wages, which -in 1810 and 1811 were 14<i>s.</i> 6<i>d.</i> per week, -had fallen to 10<i>s.</i> then as the bullion wages of -1810 and 1811 were a little above 12<i>s.</i>, the<span class="pagenum" id="Page_79">79</span> -fall in the bullion value of the currency -would be nearly 17 per cent., or for the same -quantity of gold which in 1810 and 1811 might -be purchased by commodities worth 83 days -labour, it would now be necessary to give commodities -the natural value of which would be -represented by 100 days labour. This difference -of course includes the effects which have -been attributed to the purchases of bullion by -the Bank with a view to a return to cash payments, -the amount of which separately it is -scarcely possible to calculate; but I am inclined -to agree with Mr. Tooke in thinking that it is -not above one or two per cent. If the price of -agricultural labour in England has not fallen so -much as is here supposed, the difference in the -value of the currency will not be so great as -above stated, but on any supposition which is -at all probable, it must be something considerable.</p> - -<p>It is certain therefore that the currency, estimated -in what appears to be a correct standard -of value, has fallen in such a degree beyond the -difference between paper and gold, as to add -much to the pressure upon the landed interest, -though by no means to the extent which would -be implied by measuring the value of the -currency in agricultural produce. This produce,<span class="pagenum" id="Page_80">80</span> -from the scantiness of the supply compared -with the demand, was at one time much above -its natural and ordinary value, and has since, -from the abundance of the supply compared -with the demand, been as much below its -natural value; while the value of the currency, -though it has fallen and risen considerably, has -been much more steady than the value of -corn.</p> - -<p>To what extent the alterations in the value of -the currency beyond the difference between -bullion and paper are attributable to the Bank -restriction, and the return to cash payments, -it is by no means easy to say. That the currency -would have fallen very considerably under the -circumstances of the last war, and risen very -considerably under the circumstances which -accompanied the peace, although paper had -been kept on a par with gold, I cannot feel the -least doubt; and probably the only difference -has been, that as the increase of paper beyond -what would circulate at par with gold gave -facilities to production, and to the bringing of -poor land into cultivation during the war, it has -tended to increase the glut and low prices since -the peace.</p> - -<p>But whatever may have been the pressure on -the owners of land since the peace, they cannot<span class="pagenum" id="Page_81">81</span> -have the slightest plea for an attempt to indemnify -themselves at the expense of the public -creditor. In the turns of the wheel of fortune -all parties should have fair play; no class of -persons can be justified in endeavouring to lift -themselves up by using unfair and dishonourable -means to pull others down; and least of all ought -such means to be thought of by the landlords of -this country, who, whatever inconveniences they -may have suffered latterly, have unquestionably -altogether benefited much more largely from -the alterations in the value of the currency, than -the very persons who in their opinion should -be made to relieve them from their embarrassments.</p> - -<p class="p4 center small"><span class="bt">London: Printed by C. Roworth,</span><br /> -<span class="bb in2 l2">Bell-Yard, Temple-Bar.</span></p> - -<div class="chapter"><div class="footnotes"> -<h2 class="nobreak p1" id="FOOTNOTES">FOOTNOTES</h2> - -<div class="footnote"> - -<p class="fn1"><a id="Footnote_1" href="#FNanchor_1" class="label">A</a> Mr. Ricardo, speaking of the commodities produced by the -capitalist, says, “their whole value is divided into two portions -only: one constitutes the profits of stock; the other the wages -of labour.” (p. 107. 3d edit.) The language of Mr. Mill, in his -<cite>Elements of Political Economy</cite>, is similar.</p></div> - -<div class="footnote"> - -<p class="fn1"><a id="Footnote_2" href="#FNanchor_2" class="label">B</a> This is very properly stated by Colonel Torrens, in his -<cite>Production of Wealth</cite>, c. 1. p. 28.</p></div> - -<div class="footnote"> - -<p class="fn1"><a id="Footnote_3" href="#FNanchor_3" class="label">C</a> The effects of slow or quick returns, and of the different -proportions of fixed and circulating capitals, are distinctly allowed -by Mr. Ricardo; but in his last edition, (the third, p. 32.) he -has much underrated their amount. They are both theoretically -and practically so considerable as entirely to destroy the position -that commodities exchange with each other according to -the quantity of labour which has been employed upon them; -but no one that I am aware of has ever stated that the different -quantity of labour employed on commodities is not a much -more powerful source of difference of value.</p></div> - -<div class="footnote"> - -<p class="fn1"><a id="Footnote_4" href="#FNanchor_4" class="label">D</a> Colonel Torrens, by representing capital under the form of -certain quantities of cloth and corn, instead of value in labour, -has precluded himself from the possibility of giving a just view -either of value, profits, or effectual demand. An increase of cloth -and corn from the same quantity of labour is of no avail whatever -in increasing value, profits, or effectual demand, if this increased -produce will not command so much labour as before, an -event which is continually occurring, from deficiency of demand.</p></div> - -<div class="footnote"> - -<p class="fn1"><a id="Footnote_5" href="#FNanchor_5" class="label">E</a> Agricultural labour is taken for the obvious reasons that it -is the commonest species of labour, that it directly produces the -food of the labourer, and that it is the most immediately connected -with the gradations of soil, and the necessary variations -of profits. It is also assumed with Adam Smith, Mr. Ricardo, -and other political economists, that, on an average, other kinds -of labour continue to bear the same proportions to agricultural -labour.</p></div> - -<div class="footnote"> - -<p class="fn1"><a id="Footnote_6" href="#FNanchor_6" class="label">F</a> In my last work, I thought that a mean between corn and -labour might be a better measure of value than labour alone; -but I am now convinced that I was wrong, and that labour -alone is the true measure.</p></div> - -<div class="footnote"> - -<p class="fn1"><a id="Footnote_7" href="#FNanchor_7" class="label">G</a> Whenever it is said that the value of labour rises in the progress -of cultivation, a comparison is made between the value of -a given quantity of labour at two different periods; and when it -is added that wages rise in proportion to the quantity of labour -required to produce them, objects are measured solely by the -quantity of labour employed upon them, although the rate of -profits may be totally different.</p></div> - -<div class="footnote"> - -<p class="fn1"><a id="Footnote_8" href="#FNanchor_8" class="label">H</a> This proposition is essentially the same as that which is -very clearly and ably expressed by Mr. Ricardo in his chapter on -Profits, (p. 128. 3d ed.) in the following terms: “in all countries -and at all times profits depend on the quantity of labour requisite -to provide necessaries for the labourers on that land, or -with that capital which yields no rent;” a proposition which -though incomplete in reference to the ultimate causes of the -variations of profits, contains a most important truth. From -this truth the legitimate deduction appears to me to be, the -constant value of labour; but Mr. Ricardo has formed his system -on a deduction exactly opposite to it. He has, however, -in my opinion, amply compensated for the errors into which he -may have fallen, by furnishing us, at the same time, not only -with the means of their refutation, but the means of improving -the science of Political Economy.</p></div> - -<div class="footnote"> - -<p class="fn1"><a id="Footnote_9" href="#FNanchor_9" class="label">I</a> Mr. Ricardo, by supposing gold to be produced always by -a certain quantity of labour and <em>capital</em>, is compelled to acknowledge -that his standard “would be a perfect measure of value -for all things produced under the same circumstances precisely -as itself, but for no others.” p. 43. This concession appears to -me quite fatal. We want to measure the value of commodities -under <em>all circumstances</em>, and it is only gold obtained exclusively -by labour, or labour itself, which can do this. See <cite>Principles -of Political Economy considered with a View to their Practical -Application</cite>, pp. 111 and 118.</p></div> - -<div class="footnote"> - -<p class="fn1"><a id="Footnote_10" href="#FNanchor_10" class="label">J</a> It is this rise in the money price of labour, occasioned by -the fall of profits, which Mr. Ricardo considers as that necessary -rise in the <em>value</em> of labour on which he makes so much -depend in his system; but if the foregoing reasoning be well -founded, it follows that this rise is not a rise in the <em>value</em> of -labour, but a fall in the value of money.</p></div> - -<div class="footnote"> - -<p class="fn1"><a id="Footnote_11" href="#FNanchor_11" class="label">K</a> This applies to the seed, and the food of the working cattle -in agriculture.</p></div> - -<div class="footnote"> - -<p class="fn1"><a id="Footnote_12" href="#FNanchor_12" class="label">L</a> The labour worked up in a commodity could not, in many -cases, be ascertained without considerable difficulty; but the -labour which it will command is always open and palpable.</p></div> - -<div class="footnote"> - -<p class="fn1"><a id="Footnote_13" href="#FNanchor_13" class="label">M</a> Practically, in all countries such as South America and -Ireland, where there is a slack demand for labour, and the -people are but half employed, the food wages of labour are -high, compared with the work done.</p></div> - -<div class="footnote"> - -<p class="fn1"><a id="Footnote_14" href="#FNanchor_14" class="label">N</a> If profits rise in some departments without falling proportionally -in others, the <em>average</em> rate of profits will have increased, -although, from the difficulty of moving capital, the rate of profits -in some employments may not have had time to rise before -the stimulus to such rise comes to an end by a fresh increase of -capital.</p></div> - -<div class="footnote"> - -<p class="fn1"><a id="Footnote_15" href="#FNanchor_15" class="label">O</a> This is the view taken of it by Colonel Torrens in his -<cite>Production of Wealth</cite>, which I think the just one; because it -makes the proper distinction between cost and value, on which -the great stimulus to production depends. But he has most -unnecessarily and incorrectly given the same interpretation to -<em>natural price</em>, which always includes profits.</p></div> - -<div class="footnote"> - -<p class="fn1"><a id="Footnote_16" href="#FNanchor_16" class="label">P</a> In order to exclude demand and supply from the costs of -production, when ordinary profits are considered as making a -part of them, it would be necessary to assume that the corn -wages of labour are always the same, an assumption which -would be quite unwarranted, not only in reference to short periods, -but to periods of fifty or sixty years, as the history of corn -wages in this country alone amply testifies (see ch. iv. sect. 4, of -my Princ. of Pol. Econ. &c.); and what but the state of the demand -and supply of corn, compared with labour, prevents profits -in the United States from being 100 per cent.? The quantity -of corn divided between the labourer and capitalist would -be amply sufficient to yield such profits, if the corn wages of -labour were no higher than in England.</p></div> - -<div class="footnote"> - -<p class="fn1"><a id="Footnote_17" href="#FNanchor_17" class="label">Q</a> Sect. IV. p. 91, et seq.</p></div> - -<div class="footnote"> - -<p class="fn1"><a id="Footnote_18" href="#FNanchor_18" class="label">R</a> One of the most valuable sections in Mr. Tooke’s late work -<cite>On High and Low Prices</cite>, is the seventh, in which he proves the -frequent occurrence of this event, and explains, with great clearness -and knowledge of the subject, the mode in which it takes -place.</p></div> - -<div class="footnote"> - -<p class="fn1"><a id="Footnote_19" href="#FNanchor_19" class="label">S</a> Inquiry into the Rise of Prices in Europe, p. 15.</p></div> - -<div class="footnote"> - -<p class="fn1"><a id="Footnote_20" href="#FNanchor_20" class="label">T</a> Perhaps at the time specifically adverted to, this supposition -will not be allowed. But it is always assumed as a general -proposition; and although 1810 and 11 were years of great -manufacturing distress, yet Mr. Tooke himself brings evidence -which shows that manufacturing labour was particularly high -in 1805 and 6.</p></div> - -<div class="footnote"> - -<p class="fn1"><a id="Footnote_21" href="#FNanchor_21" class="label">U</a> In poor countries a succession of bad seasons sometimes -takes place without any rise in the price of labour, and in that -case, though there may be a high price of corn, there is no fall -in the natural value of money. It will not be purchased with -less labour.</p></div> - -<div class="footnote"> - -<p class="fn1"><a id="Footnote_22" href="#FNanchor_22" class="label">V</a> These averages are taken from Lord Lauderdale’s <cite>Further -Considerations on the State of the Currency, published in 1813</cite>. -Appendix, p. 33.</p></div> - -<div class="footnote"> - -<p class="fn1"><a id="Footnote_23" href="#FNanchor_23" class="label">W</a> For the foregoing valuable table, and the information accompanying -it, I am indebted to Mr. Mure, of Kircudbright, -through the kind intervention of Mr. M’Culloch, of Edinburgh.</p></div> -</div> -</div> - -<div class="chapter"><div class="transnote"> -<h2 class="nobreak" id="Transcribers_Notes">Transcriber’s Notes</h2> - -<p>Simple typographical errors were corrected. -Punctuation, hyphenation, and spelling were made -consistent when a predominant preference was found -in the original book; otherwise they were not changed.</p> - -<p>This book has no Table of Contents.</p> -</div> -</div> - - - - - - - - -<pre> - - - - - -End of the Project Gutenberg EBook of The Measure of Value Stated and -Illustrated, by Thomas Robert Malthus - -*** END OF THIS PROJECT GUTENBERG EBOOK THE MEASURE OF VALUE *** - -***** This file should be named 62407-h.htm or 62407-h.zip ***** -This and all associated files of various formats will be found in: - http://www.gutenberg.org/6/2/4/0/62407/ - -Produced by Charlie Howard and the Online Distributed -Proofreading Team at https://www.pgdp.net (This file was -produced from images generously made available by The -Internet Archive) - - -Updated editions will replace the previous one--the old editions will -be renamed. - -Creating the works from print editions not protected by U.S. copyright -law means that no one owns a United States copyright in these works, -so the Foundation (and you!) can copy and distribute it in the United -States without permission and without paying copyright -royalties. 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